Peak Shaving & Load Shedding Strategies for Cost Reduction May 22, 2018

Teaching Objectives What redundant systems can be trimmed or turned off? Provide criteria for determining energy savings values and applying them. Demonstrate Distributed Generation (DG)/Customer-Distributed Energy applications. Discuss pending Net Zero Energy (NZE) and how it may apply to you.

Our Qualifications #1, #2 or #3 renewable energy builder in the US over the past 5 years. #1 mission critical builder in the US over the past 5 years. Industry leader for integrated electrical solutions – Modular Power Solutions. Consulting to the State of CA on pending NZE policy and applications. Have two NZE projects completed or under construction in 2018.

State of the Union - Energy Energy is getting more expensive. Energy infrastructure has been underinvested by most Utilities in existing service areas. Water is getting more scarce. Existing infrastructure is aged and may not support new loads in older service areas. Planning departments will look favorably on NZE and CDE efforts.

Key Terms CDE - Customer Distributed Energy systems. NZE - Net Zero Energy systems.

Peak Shaving The reduction of Utility power to the facility. Always has some form of system shift or control revision from normal conditions. It can work within your SLA or operating guidelines. Every organization can do this – it’s being done today albeit quietly. Can’t be afraid to try.

Peak Shaving Considerations Utility costs are not consistent during all hours of the day. Utility costs are typically highest during the warmest/highest demand part of the day. Mechanical systems most loaded during the most expensive part of the day. Source selection based on time-of-day charges. AQMD run times will affect CDE power system operation. Software can determine input source or mechanical system configuration.

Apply Peak Shaving with Your Systems Many ways to achieve this: Shut down redundant system. Reduce energy consumption by changing mechanical set points. UPS systems in Economy-mode. UPS on Battery and off input Utility. Customer Distributed Energy (CDE) systems. Virtual power utilization (www.virtualpowersystems.com).

Customer Distributed Energy Systems Could be your existing plant or a microgrid/distributed energy system. It’s your power system, not the Utility’s. Defined as any power system you have installed on the site. Sources: Generators Solar Fuel Cells Stand-alone / Mixed Connection Batteries.

CDE System Challenges Site limitations / Solar = 5 acres per MW. AQMD operating limitations. Capital cost are prohibitive for some systems. Costs are inversely proportional to the physical size of the system. UPS firmware upgrades required for battery source selection. Varying operating costs. AHJ requirements v. practicality.

Net Zero Energy Systems CDE is the base to NZE. Drives input energy down while adding on site generation. Typically uses acute energy saving methods on site – incongruent with data center operations. Can get you to a curtailable Utility service – kah-ching / major $$ saved! Look to California Title 24 energy codes for the future.

NZE System Challenges It’s coming and poorly defined for commercial buildings. Input Utility and fuel costs are the baseline, variable cost argument. Will be defined at the State and Local levels. Often limited by overall electrical system size – not well suited for data centers. Flies in the face of AQMD requirements. Offsite clean energy offsets are not in the Cal PUC statues at this time. Negotiate, negotiate, negotiate!

Net Zero Energy Legislation http://www.cpuc.ca.gov/ZNE/

Bill Mazzetti Senior Vice President May 22, 2018